I didn't really properly tested the DVR on my first review
http://www.geniv.com/MPEG.HTM

anyway here's an update:
The other day and was just wondering why on a review: http://tangentsoft.net/video/mpeg/reviews/dvr.html

the guy said the DVR have "very good quality", while my experience was with crappy video. so I started to question my setup. I had some wavy picture during playback of mpg files on their player but that was taken care of by manual calibration.

I found out that the video in cable I was using was breaking apart on the inside. anyway I went to the WIZ and bought a $25 set of "high quality" a/v cables (or the sales person claims...) anyway I used those cable and the encode quality is WAY better! the wavy lines and extra artifacts on the encoded video was gone I then change to another generic video cable and got the same result so screw me for paying for the expensive ones

After some deeper testing I realize that when I was making my capture of "Soldier" before through my TBC. it DID decreased my video quality. so I switch to the DVD "Matrix" and "Ninja Scroll" which is not macrovision protected and I can just connect to my DVD player. got some good encoded video quality.

The encoded video from the DVR was on par with the PV256 in terms of quality but it is kinda "different". on the SNAZZI and PV256 the "edge of different colored objects" was "smoother" but the over all picture was not as sharp. on the DVR the "edge" of objects was more "vivid" and "dittered" and you can see slight artifact that you wouldn't notice on the SNAZZI or PV256 but the overall picture was sharper. (I watch the clip on my TV with the video out and the edge issue didn't really show up)

Also interesting. at the same bitrate (VCD) on the SNAZZI and PV256 on some quick moving scene I notice some macroblocks. but on the DVR there was less macroblocks and some scenes I didn't even notice any macroblock.
To sum up the video quality. the SNAZZI and PV256 is smooth and alittle less artifact. The DVR have a little more noticeable artifact but the overall image is sharper and less macroblock in moving scenes. the quality of the 3 is the same so it depend on which u perfer.

With the video quality taken care of :
I give the Real Magic DVR a final adjusted score of : 8.5 and would recommend it if you don't mind the high price tag and don't care or have a workaround for the macrovision issue.